MindFuse is set to enter the world of virtual worlds. The Berkeley, California-based developer of massively multiplayer online (MMO) games announced Tuesday that it has received $1 million in convertible note funding from Keiretsu Forum.

The funding, according to CEO Joseph Walters in an email, will mostly “go towards staffing and building out more of the MMO world.”

MindFuse will be releasing its first MMO, the World of Gatheryn, in 2009, though the startup is currently not disclosing details on the rollout and subscription model.

The World of Gatheryn is what Mr. Walters calls an “AdvancedCasual World,” which combines “high quality 3D with a casual gaming experience.” 

MindFuse doesn’t appear to be targeting the World of Warcraft crowd. It does look as if it is hoping to attract the ever-expanding pool of casual gamers with a less cartoon-like package.

The company has raised a total of $1.75 million since its formation in 2006.